Imagine
a state agency wants to hire a private company to clean up a Lake Oroville
beach area. How should that agency determine which company will provide the
best deal for taxpayers? Cost is key, but “cheap” is not a synonym for “a job
well done.”
Finding
the best company to perform a service on the public’s dime is the focus of
“Contracting For Services In State And Local Government Agencies” ($94.95 in
hardcover from Routledge; also for Amazon Kindle) by William Sims Curry. The
second edition of the book has just been published, and it updates “best
practices” based on a 2015 survey of states, cities and other governmental
entities.
Bill
Curry is President of WSC Consulting in Chico; he is a Certified Professional
Contracts Manager and served on the Professional Standards and Ethics Committee
of the National Contract Management Association. His book provides not just
guidance for agencies but online templates ranging from a “request for
proposal” (RFP) to a Contractor Performance Report.
Chapters
provide exquisite detail on healthy competition (Curry writes me that “reliance
on sole source contracting during emergencies can actually delay the delivery
of services and supplies”); setting up transparent communication; dealing with
conflicts of interest; responding to protests; contract review; and how to rank
proposals in the first place.
Curry
shows how various contract proposal scoring mechanisms (from color coding to a
1-10 scale) fall woefully short. For example, if a group of contract reviewers
using a 10-point scale tends to favor a range of 7-10 (7 would be “average” or
acceptable), another reviewer could bias the result by using the full range,
assigning a 1 here or a 10 there.
A
better way is called Total Weighted Score, which involves using a 7-10 scale
for subjective ratings and a weighted score for objectively determined items
(like cost). The idea is for the RFP to say how much the cost or number of
employees “counts” in the final determination. (I note that the Federal
Department of Defense, which prohibits such scoring, should get a clue.)
Curry’s
comprehensive guide is great beach reading--especially if your company is
proposing to clean it up.
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